Category: Life Insurance

Even though dividends are not guaranteed, one of the perks of specific whole life insurance policies is that they can provide policyholders with dividends. However, specific participating insurance policies do provide this as a benefit to policyholders when the company performs better than anticipated. Dividends are often connected with stock ownership. You can use it in several ways, some of which may be preferable to others based on your circumstances. The dividends from whole life insurance policies are often not subject to taxation because they are treated as repayments of premiums. Payments are typically made on the policy’s anniversary. Let’s consider your possibilities before deciding what to do with your dividends.

1. Take Dividends as cash: This option allows policyholders to receive the life insurance dividend amount in cash rather than reinvesting it into the policy or purchasing additional coverage. In addition, by taking the dividend in cash, policyholders can use the money for various purposes, such as repaying credit card debt, boosting emergency savings, or contributing to a vacation fund.

2. Additional Purchase Coverage: Policyholders can use dividends to purchase additional coverage, such as term life insurance, which can provide additional protection for their loved ones. Policyholders with significant changes in their lives may be interested in this option. For instance, having a child, buying a new house, or wanting to ensure their loved ones are cared for financially upon their demise.

3. Reduce premium payments: Policyholders can use dividends to reduce their premium payments, which can help to lower the overall cost of the policy. This might be a practical choice for policyholders in times of financial difficulty or looking to cut back on discretionary spending. Policyholders can retain their coverage, continue to enjoy the policy’s cash value and death benefit, and lessen the financial burden of paying for it by using profits to lower premium payments.

4. Reinvest dividends into the policy: This option enables policyholders to purchase additional paid-up insurance, which increases the policy’s death benefit and cash value. Paid-up insurance is a life insurance policy for which no more premium payments are required beyond a particular point. By using dividends to purchase additional paid-up insurance, policyholders can increase the policy’s death benefit and cash value. In addition, policyholders may choose to enhance their policy’s face value to better safeguard their loved ones financially in the case of their death.

As you can see, there are a variety of ways that you can put whole life insurance earnings. However, the best one will depend on the specific circumstances of each policyholder. You can adjust your dividend spending plan annually based on your needs and circumstances.

Contact Information:
Email: [email protected]
Phone: 2129517376

Bio:
M. Dutton and Associates is a full-service financial firm. We have been in business for over 30 years serving our community. Through comprehensive objective driven planning, we provide you with the research, analysis, and available options needed to guide you in implementing a sound plan for your retirement. We are committed to helping you achieve your goals. Visit us at MarvinDutton.com . Tel. 212-951-7376: email: [email protected]

It is often not essential for those who maintain their Federal Employees Health Benefits program coverage into retirement to buy a Medicare supplemental insurance (Medigap) policy, as most people do. This is because FEHB serves a similar purpose. In other words, Medicare typically pays benefits first, and any outstanding balances and medical procedures not covered by Medicare are then forwarded to the FEHB carrier, who then pays in accordance with the plan’s provisions. 

However, some retirees cannot continue FEHB or want to discontinue it because they believe that doing so will require them to pay for coverage they can only receive once. In these cases, they rely on Medicare instead. They occasionally purchase a Medigap plan, a type of private insurance intended to help cover Medicare cost-sharing requirements and other coverage gaps. There is conventional Medigap insurance, and each one provides a unique set of advantages.

The Medigap open enrollment period is the ideal time to get insurance. If you are 65 or older, you have the right to purchase the Medigap coverage of your choice for six months from the day you initially enroll in Medicare Part B.

If you get coverage during this time, your application will not be denied, or your rates won’t be increased due to bad health. You might not be able to buy the coverage of your choosing when the open enrollment period for Medigap expires. You may have to take the Medigap plan your insurance provider is willing to provide.

Your Medigap open enrollment period starts when you turn 65 if you have Medicare Part B but are under 65. Several states do, however, mandate at least a brief open enrollment period for Medicare recipients under 65.

Your state’s health insurance support program can answer questions concerning Medicare and other health insurance. The services are free. You can seek help to know whether you require additional insurance and, if so, what sort and how much insurance to buy.

You can also learn more about Medicare SELECT, a different sort of Medicare supplementary health insurance offered by insurance companies and HMOs across the majority of the nation, via your state assistance program.

Nearly all aspects of Medicare SELECT and traditional Medigap insurance are the same. The distinction is that, unless there is an emergency, you must use a specific hospital or doctor that each insurance has designated to be qualified for full benefits. Medicare SELECT plans often have lower rates than standard Medigap policies due to this criterion.

Contact Information:
Email: [email protected]
Phone: 2129517376

Bio:
M. Dutton and Associates is a full-service financial firm. We have been in business for over 30 years serving our community. Through comprehensive objective driven planning, we provide you with the research, analysis, and available options needed to guide you in implementing a sound plan for your retirement. We are committed to helping you achieve your goals. Visit us at MarvinDutton.com . Tel. 212-951-7376: email: [email protected]

OPM has urged agencies to inform their staff that some rates for self-plus-one coverage in the FEHB program will again be more expensive in 2023 than those for family coverage.

According to a statement from OPM to agency benefits offices, this will be the case in three national plans—the NALC Health Benefit Plan, Foreign Service Benefit Plan, Rural Carrier Benefit Plan—as well as about 80 regional plans out of the 271 that will take part in the 2023 plan year.

While there is no cap on the number of people who may be covered under family coverage, again provided they are eligible, under self plus one, an enrollee only covers one additional person (who must be eligible under family coverage rules, which for the most part means spouses and children under the age of 26).

With only self-only or self and family options available at the time, self plus one was added to the program ten years ago on the theory that by being required to enroll in family coverage, people with only one eligible family member to cover—a married couple without any eligible children or single parents with one eligible child—were subsidizing the program enrollees with over one, and that premiums for self plus one would be lower.

This has mainly been demonstrated to be the case. Still, there has been an anomaly in some plans every year since self plus one has been shown to attract a disproportionately high enrollment of older couples without children who are likely to use more medical care than the program’s typical consumer. Each of the three coverage alternatives is expected to be self-funding within a plan under the FEHB program’s framework, with no cross-subsidies.

“Enrollees should carefully review the rates of their existing plan for 2023 and any alternative plan options they are contemplating. Open Season, which runs from November 14 through December 12, is the only time registrants may make changes,” according to OPM’s letter.

Why the increase in Self Plus One rates?

According to John O’Brien, director of health care and insurance at OPM, “There is a limit on how much the government will pay towards the cost of a Self Only, Self Plus One, or Self and Family enrollment.”

The government pays either the maximum contribution or 75% of the total premium, whichever is smaller, and the enrollees cover the balance. This computation may, in some circumstances, result in a higher enrollee share for a Self-Plus One enrollment than a Self and Family enrollment, such as plans with premium costs that are higher than the program average.

As previously mentioned, one reason for the increase is that healthcare for elderly folks is costly. Older couples with older kids often choose Self-Plus One plan. And they require significantly more medical attention than younger people. Thus insurance is more expensive for them. Family coverage may be priced reasonably since children and younger adults use fewer services and are less costly to cover than granny and grandpa. 

Contact Information:
Email: [email protected].net
Phone: 2129517376

Bio:
M. Dutton and Associates is a full-service financial firm. We have been in business for over 30 years serving our community. Through comprehensive objective driven planning, we provide you with the research, analysis, and available options needed to guide you in implementing a sound plan for your retirement. We are committed to helping you achieve your goals. Visit us at MarvinDutton.com . Tel. 212-951-7376: email: [email protected]

Nowadays, many federal employees suffer from certain medical conditions. However, they are still in an anxious state of mind where they can’t figure out why they need federal disability retirement and how to qualify for it. Though consulting an attorney is the best solution to come out of it, we are here to help you apply for federal OPM medical retirement. 

Step By Step Guide On How To Sign Up For FERS Medical Retirement

A medically challenged federal employee must complete five stages to qualify for FERS disability retirement funds.

Make an application for Social Security Disability Benefits

It is essential to apply for social security benefits first because FERS must detect if they have claimed Social Security disability payments when using them for FERS disability retirement.

Remember that you are not required to be accepted for SSDI to apply for FERS medical retirement funds. It is only necessary because you need to enclose a copy of the SS application receipt or grant notice with the FERS disability retirement application.

Fill out the Standard Form 3107 Application

Federal employees must apply for FERS medical retirement benefits while working in the public sector or within 12 months of leaving the service.

It is a long application form that requests comprehensive information such as personal info, a summary of federal service, marital status, type of annuity chosen, insurance details, and other claim information. It also includes payment instructions, claimant’s checklist, military experience, and military retirement pay details, workers’ compensation information, and the applicant’s credentialing that all information is entirely accurate.

Fill out Standard Form 3112, Disability Retirement Application Documentation

Federal employees who are disabled must produce documentation to support their FERS disability retirement application. The Standard Form (SF) 3112 consists of five significant forms, some of which are filled by the applicant and others by their physicians, supervisor, or agencies.

It includes the following:

1. Applicant’s Statement of Disability, Standard Form 3112A.

2. Supervisor’s Statement, Standard Form 3112B.

3. Physician’s Statement, Standard Form 3112C.

4. Agency Confirmation of Reassignment and Accommodation Attempts, Standard Form 3112D.

5. Disability Retirement Request Checklist, Standard Form 3112E.

Make Xerox Copies Of All documents

Make Xerox Copies of all applications supporting documentation and certification forms because FERS disability retirement applicants must keep them safe. 

Submit the Form

If the hiring agency currently employs the employee, you must send the application and relevant papers to the personnel office. It also applies to government workers out of work for 30 days or less. Later it’s the responsibility of the personnel office to forward it to OPM for assessment and confirmation of disability. However, if a federal employee has left government duty for 31 days or longer, they must submit everything to OPM directly. 

Final Words

Now you know how to apply for federal disability retirement. Make sure you don’t miss any important information while filling out the form, and you are good to go. 

Contact Information:
Email: [email protected]
Phone: 2129517376

Bio:
M. Dutton and Associates is a full-service financial firm. We have been in business for over 30 years serving our community. Through comprehensive objective driven planning, we provide you with the research, analysis, and available options needed to guide you in implementing a sound plan for your retirement. We are committed to helping you achieve your goals. Visit us at MarvinDutton.com . Tel. 212-951-7376: email: [email protected]

You will become eligible for life insurance via the Federal Employees’ Group Life Insurance program on the first day of employment with the feds. Still, you must provide written notice of refusal before your first pay period ends to be covered.

The basic plan includes two distinct types of FEGLI protection. First, there are Basic offers, no-medical-exam term life insurance for groups. The second is a form of insurance called accidental death and dismemberment (AD&D) that offers double indemnity in the event of an accident.

Aside from one exception, the government and you will each pay half the premium for this set of benefits. The Postal Service has negotiated with the union to cover the total cost of its employees’ Basic health insurance.

Main Life Insurance

One year’s salary is the value of your Basic life insurance policy. From the sum, retirement contributions are withheld. And it’s inflated by an extra $2,000 to the nearest thousand. If your income changes, so will that amount.

The amount of your AD&D coverage will be the same as your Basic coverage if death strikes or you lose two or more appendages, such as a hand, foot, or eye. The compensation would be half as much if only one limb was severed.

As you become older, your AD&D payout decreases. If you are under 35, your AD&D coverage will equal twice your Basic life insurance. Once you reach age 45, the multiplier will equal your Basic insurance amount, having decreased by a tenth for each year above the age of 35.

Added Insurance

If you already have Basic and AD&D life insurance, you can add other types of coverage. You must pay the total price for any of these upgrades that you select.

Option A – Standard Insurance

You can purchase an extra $10,000 in life insurance under Plan A. The premiums start relatively low but rise steadily as an employee ages. A higher rate applies to those who are older.

Option B – Extra

Option B allows you to get life insurance for one, two, three, four, or five times your yearly base salary (rounded up to the next $1,000).

Option C – For Family

Option C allows you to include your spouse and qualifying dependent children on the same insurance. 

With Choice B, you can choose five times protection for your family, with each multiple amounting to $2,500 for your spouse and $5,000 for each of your children. 

Insurance premiums are priced on a per-multiple basis and increase with age. It’s recommendable to get the best insurance for you and your family.

Contact Information:
Email: [email protected]
Phone: 2129517376

Bio:
M. Dutton and Associates is a full-service financial firm. We have been in business for over 30 years serving our community. Through comprehensive objective driven planning, we provide you with the research, analysis, and available options needed to guide you in implementing a sound plan for your retirement. We are committed to helping you achieve your goals. Visit us at MarvinDutton.com . Tel. 212-951-7376: email: [email protected]